When market liberalization is delayed,_____.
A) first movers possess a significant advantage over later entrants.
B) first movers possess clear, significant advantages in transitional markets.
C) later entrants possess a significant advantage over first movers.
D) substantial risks to premature entry are removed.

Question

Quizplus · Accepted Answer

First movers who succeed in taking over newly privatized state-owned enterprises, such as telecom and energy firms, possess a significant advantage over later entrants, especially when market liberalization is delayed and the host government provides protection to the newly privatized incumbent firms.

When Market Liberalization Is Delayed,_____